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Treasury Yields Ease, Stocks Rise on Inflation Fears
25 Sep
Summary
- US stock futures advanced as Treasury yields retreated from recent highs.
- Easing oil prices provided market sentiment a much-needed boost.
- The Dow Jones Industrial Average is set for its fourth consecutive weekly decline.
US stock futures moved higher on Friday, with the S&P 500 futures up 0.3%, Dow Jones Industrial Average futures up 0.2%, and Nasdaq 100 futures up 0.5%. This upturn followed a retreat in Treasury yields from their recent peaks. The benchmark 10-year US Treasury yield, which had surpassed 5.20%—its highest since 2007—eased slightly on Friday. This pullback offered a reprieve to equity markets concerned about rising borrowing costs.
Investors found additional comfort as oil prices retreated. Brent crude fell 1.4% to $98.83 a barrel, and US crude declined 1.7% to $92.97, though both remain elevated compared to pre-war levels. Market watchers closely monitored developments around the Strait of Hormuz, a key oil shipping route, with any sustained disruption posing a risk to energy prices and inflation.
Despite Friday's futures gains, the Dow Jones Industrial Average was poised for its fourth weekly decline, down 0.6% for the week. European markets showed mixed performance, with the FTSE 100 rising 0.3% while the CAC 40 dipped 0.1%. Investors also turned their attention to a meeting between US President Donald Trump and Chinese President Xi Jinping, discussing trade and other global issues with limited concrete progress reported so far.
